Tuesday, 2nd week of 2nd quarter.
I started the day by fetching ah ma to polyclinic for her routine checkup. At 2pm, market started to move and taxied home.
In the morning, with laptop set up at polyclinic, market started to move with antipodean pairs moving in line with trend.
by 2pm, movement seemed to have halted and flow moved to JPY crosses.
Hit on USDJPY and exited by evening.
By evening, Dj30 n Dax30 started moving , threatening to continue down move from 13TL.
At height of paper gains, it was half of account.
By the end of day however, all unrealized profits soon slashed to a third of it.
This has set me thinking, should I realize profits based on account %, instead of trying to play out price pattern?
Will constant profit taking ensure a smoother equity curve?
1) ensure constant profit taking , good for morale. Although against conventional school of thought, positive feel-good emotions will be better for mental health and improve’s good nights sleep.
2) Since beocming a full-time trader, I have more time to monitor the markets. hence in the past 2 months I do not have issues finding entry points, be it level break, WR breakouts.
My edge will be much augmented ability to read market direction, although timing can still be improved. Most of the time, i will not need to worry about cutting loss, if positions are not oversized.
Exiting and re-entry can be better IF ,
prior exit was worthwhile. say every 70 pips with a good lot size. Account can proliferate in a faster way.
3) quicker EP and TP will allow shorter time in the market, and hence allows me to focus on the next trade. Finish each trade and move on quickly.
Case in point will be EURAUD. of course it will be heroic to be holding a position for over 800 pips, but psychologically it is not easy for me. Hit and run tactic in the short direction however, can help ensure stable n healthy account growth, instead of constant n daily mental anxiety on a singular large position.
To sum this off, rather than try to achieve what is preached in literature, it may be better to recognize my personal emotional limitation, adapt and incorporate these weakness into the system to overcome them.
hence specific rectification from now will be :
1) Booking profit at an arbitrary amount of profit.
2) if possible try to end the day with all positions exited, unless there are more tactical value in them.
With advent of MY Levels, there will be more visible target levels to aim for.